Despite some concerns that emerged in late October after the new round of U.S. restrictions on exports to China imperiled a large number of Nvidia (NASDAQ: NVDA) orders, the semiconductor company has logged remarkable performance throughout the year.
In fact, the chip maker’s shares have been at the very forefront of a broader tech stock rally seen throughout the year. The key reasons for the growth that, at the time of publication, amounted to 246.88% since January 1 are Nvidia’s significant involvement with artificial intelligence (AI) and its overall dominant position in the semiconductor market.
Additionally, Nvidia received a significant boost on Monday, November 13, after it announced a new advanced AI chip that is to ship in Q2, 2024. The news further bolstered the company’s stock, and as of Tuesday, it recorded a 10-day winning streak of ever-higher closes.
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Considering the rise is more akin to something from the volatile crypto market than to the performance of a major and well-established company, Finbold decided to consult OpenAI’s advanced language model – ChatGPT – and see whether it thinks the rise is likely to continue or if it is all just a bit too good to be true.
ChatGPT predicts NVDA price range on January 1, 2024
After taking into account various business developments and Nvidia’s stock market performance, ChatGPT offered a rather bullish estimate for its performance over the next two months – according to the AI, NVDA is likely to stand between $550 and $600 on New Year’s day.
The estimate is based on Nvidia’s growth up to and throughout 2023, its overall position in the advanced microchip market, and the news about the new AI chip combined with the enthusiasm it sparked.
While ChatGPT considers this range the most likely, the AI conceded that there are other possible scenarios for the stock in the following two months. According to the language model, things may turn out even better for the semiconductor giant should enthusiasm reach a boiling point, and it may go as high as $650.
It also assessed that things might yet go slightly worse for Nvidia primarily due to the relatively tense situation between the U.S. and China and developments like Baidu (NASDAQ: BIDU) ordering advanced chips from Huawei rather than the American semiconductor giant.
However, the price range in this bearish scenario presents a relative stagnation rather than a major decline as it stands between $450 and $500.
Nvidia price analysis
While it is impossible to say for certain how Nvidia will perform in the future, its growth so far in 2023 is undeniable. At the last market close, its stock stood at $496.54 – meaning it rose by 2.13% in the last 24 hours.
The strong performance has, by the time of publication, continued into extended hours trading, and Nvidia shares are up another 0.55%. Zooming out further, the chip-making giant has had a strong week, rising nearly 8% in the last 7 days.
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